Increasingly, they are being worn as a fashion accessory and – in the era of the expensive smartwatch from the likes of Apple – a status symbol.

Just this week Apple announced a partnership with French luxury products company Hermès to produce a range of stainless steel smartwatches with stylish handmade leather straps costing up to £1,350.

The firm also offers a version with an 18 carat rose gold case that comes in at an astonishing £13,500.

Celebrities such as David Beckham (left) and Kanye West (right) are often seen wearing fashionable watches

Research from retail analysts Mintel has found that one in four people who wear a watch rarely use them to tell the time.

A similar proportion – 27per cent - say they wear one as a fashion accessory, but this rises to almost one in two for those aged 20-24, showing how attitudes are changing.

Some one in eight say they wear their watch as a status symbol, but this rises to one in four of those 25-34s.

Mintel found that the wealthy are most likes to view their watch as a badge of wealth and success.

Four in five people with a household income over £50,000 own a watch, compared to just two-thirds of those at the other end of the wealth scale with an income under £15,500.

One in four of those with a household income over £50,000 admitted the watch was used as a status symbol, compared to just 10per cent where income was under £25,000.

The traditional watch fell out of favour following the rise of the smartphone, which not only tells the time, but does so much more in terms of entertainment, social interaction and as a tool for work.

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However, the new generation watch has got smarter and is proving its worth once more.

Devices from tech companies like Apple, Samsung, Microsoft and Pebble connect to smartphones via a wireless link and offer an astonishing array of services.

They are email and phone call alerts and they incorporate a host of monitors which can the track heart rate, steps taken, calories burned, sleep patterns and distance travelled via GPS satellite links.

It is believed they will become an invaluable tool for the medical profession, providing real-time health data whether their patient is in a hospital bed or at home on the sofa.

Perhaps the biggest innovation is the ability to use the watches to pay for items by simply swiping them over a till terminal in a coffee shop or to buy a ticket on a bus.

Sales of watches appears to be accelerating as people sign up to the new ways they can be used.

Sales grew by a modest 1.5per cent in 2013, but this accelerated to 4.6per cent in 2014 to reach £1.08billion in the UK. The figure is expected to rise by around 6.5per cent - £50m – this year to reach £1.15bn.

Mintel found that the wealthy are most likes to view their watch as a badge of wealth and success

While tech companies are driving the revival of the watch, consumers say they want the cachet of a fashion brand on their wrist. One in five women and a one in four aged 16-24 say they prefer watches from fashion brands.

That goes a long way to explain why Apple and its British design chief, Sir Jonathan Ive, have been keen to ensure the Apple Watch has a relationship with names like Hermès.

Explaining the partnership, he said: ‘Apple and Hermès make very different products, but they reflect the deep appreciation of quality design. Both companies are motivated by a sincere pursuit of excellence and the desire to create something that is not compromised.’

Other luxury labels including Gucci, Montblanc, Tag Heuer, Diesel, and Guess have also entered the smartwatch category through tie-ups with tech companies.

To date, the purchase of smartwatches have been driven by young men, however the partnerships with fashion brands is designed to encourage take-up among women.

Senior Fashion Analyst at Mintel, Tamara Sender, said: ‘As people are surrounded all day by technology that also includes the time, watches are no longer being purchased solely for timekeeping.

‘Around a quarter of watch owners rarely use their watch to tell the time, highlighting the growing use of alternative devices such as smartphones, tablets and laptops for timekeeping and the perception of the watch as a fashion accessory.

‘As the smartwatch market develops, it could become the latest desirable fashion accessory, posing a direct threat to the fashion watch market as they both attract a young demographic.

‘While uptake of smartwatches has been slow due to caution surrounding first editions of new technologies, this is likely to change as more companies enter the market and as people get used to their functionality.’